An Assessment of Covid-19 Factors which Influence Non-Compliance of Payments in Respect of Social Security Contributions in Ghana

Abstract

COVID-19 has been wreaking havoc on the business world for nearly two years, with most industries experiencing a significant decline in revenue. The major statutory agency in charge of regulating employee pension schemes in Ghana, the Social Security National Insurance Trust (SSNIT) Ghana, has also seen a drop in monthly contributions. As a result, the goal of the study was to see how the COVID-19 epidemic is affecting non-compliance with Ghana’s Social Security Monthly Contribution Payments. The study used a random sampling methodology to select 6 out of 19 decentralized governance structures in Accra, after which a purposive selection method was used to select 50 small and medium business enterprises for their perspectives on the study’s goals. The major research tool was the questionnaire, and the Statistical Package for Social Science (SPSS) was used to analyze the data collected in the field. COVID-19 appears to be taking a toll on the finances of small and medium-sized businesses that have made deals with SSNIT authorities to reschedule obligations related to default contributions, according to the findings. Although new projects have been placed on hold due to diminishing inflows, SSNIT’s commitment to employees and payment of pensions to elderly residents remains unaffected. In light of the a fore mentioned challenges posed by the pandemic, the study suggested that the Government of Ghana should seek concessionary loans from world-class lenders such as the World Bank to strengthen its local stabilization fund and inject a significant amount of funds to assist struggling SMEs in resuming operations.